Proposal to cap voting right at 26% in pvt bankshttps://indianexpress.com/article/news-archive/web/proposal-to-cap-voting-right-at-26-in-pvt-banks/

Proposal to cap voting right at 26% in pvt banks

A parliamentary panel recommended raising voting rights of investors in the private sector banks but with a cap of 26 per cent with a view to maintaining a balance between economic control and promoting corporate democracy

A parliamentary panel on Tuesday recommended raising voting rights of investors in the private sector banks but with a cap of 26 per cent with a view to maintaining a balance between economic control and promoting corporate democracy.

The Banking Laws (Amendment) Bill 2011,introduced in the Lok Sabha in March this year,had proposed providing voting rights to investors commensurate with their shareholding in the private sector banks. At present,the voting right is capped at 10 per cent.

“The (Finance) Ministry may consider increasing the limit only to 26 per cent in order to keep a balance between conflicting factors underpinning the decision,namely concentration of economic power/control and promotion of corporate democracy,” said the Parliamentary Standing on Finance.